NEW DELHI, Apr 20: A Memorandum of Understanding was signed between Ministry of Railways, Ministry of Coal and Odisha government for formation of a Joint Venture to undertake railway connectivity projects (development, financing and implementation) for coal transportation by rail. Calling the Coal Ministry as the biggest customer of the Railways, Minister Suresh Prabhu said, Coal Ministry is the biggest customer, benefactor and supporter of the railways. Most of the revenue is earned by coal freight, making it as an important customer, Mr Prabhu added. Terming coal as a poor man’s fuel, Mr Prabhu said there was a need to augment its production and it is the prime responsibility of the Railways to play a major role in its transportation to the end users. To meet this demand the participation of the state governments also plays a very crucial role, Mr Prabhu said while thanking the Odisha Government for being a part of the JV. The Railway Minister also said that similar joint ventures will be signed with other state governments also and for other sectors as well. Minister of State (Independent Charge) for Power, Coal and New & Renewable Energy, Piyush Goyal on the occasion appreciated the support provided by the Odisha Government. He said, “There was a time when we used to import coal but now the production of the coal is increasing in our country and it is estimated that by 2020, the coal production in India as a whole will be around 1.5 billion tonnes. As a result of this MoU, electricity will be reached to common man at affordable prices”. Under this JV, the Railways will earn more freight revenue by providing a connectivity to the coal fields where as the Government of Odisha will benefit by way of more royalty which will address the developmental deficits of the state. Congratulating the three stakeholders, Mr Goyal said, ”this JV is a revolutionary step and hope it will go to a new height.” Minister of State Transport (Independent Charge) for Commerce, Odisha Government Ramesh Chandra Majhi said this JV will benefit the Odisha and its people. MoS Railways Manoj Sinha said, ”within two months we are able to fulfill a big budget promise. This is a big step as the Railway Ministry, Coal Ministry and the Government of Odisha have joined hands to start this joint venture which will benefit the growth of the country.” According to the MoU, the Ministries of Railway, Coal and the Government of Odisha will participate in the equity on its own or through Public Sector Undertakings (PSUs) as nominated. The Ministry of Railways has nominated IRCON. The JV will have 64 per cent shareholding from Ministry of Coal, 26 per cent from Ministry of Railways and 10 per cent from the Odisha government. It will have an authorised share capital of Rs 1000 crore with initial paid-up capital of Rs 50 crore. The Odisha government will facilitate in completing the process of land acquisition and environmental/forest clearance for projects. The MoU was signed in the presence of Mr Prabhu and Mr Goyal, Mr Sinha and Mr Majhi. (UNI)
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